Home insulation: Why is there a royal commission into the Rudd government's scheme?

At the height of the global financial crisis, in February 2009, then prime minister Kevin Rudd announced the "Energy Efficient Homes Package" as part of his $42 billion stimulus package. Within this was the home insulation program, in which the Rudd government offered to spend more than $2 billion installing ceiling insulation into 2.7 million homes. Those carrying out the program were instructed to reduce red tape and start working soon as possible. When the Rudd government closed the program in February 2010, more than 1 million homes had been insulated.

What are the criticisms of the scheme?

The deaths of four young men – Matthew Fuller, Rueben Barnes, Mitchell Sweeney and Marcus Wilson – have been linked to the Rudd government home insulation program. Criticisms of the scheme included that it was rolled in haste, with many inexperienced and poorly trained or untrained operators taking up the lucrative work.

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There have already been more than half a dozen inquests and reports into the home insulation program. These include inquests in Queensland and New South Wales into the deaths of Mr Fuller, Mr Barnes, Mr Sweeney and Mr Wilson. It also includes a report by the Australian National Audit Office and a 66 page review of the administration of the insulation program, which identified "failings" in governance, program design, risk management, audit and compliance mechanisms.

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Why the royal commission?

Soon after taking office, the Abbott government ordered a royal commission into the home insulation program, which commenced hearings on Monday, March 17. The royal commissioner, Ian Hanger, QC, was asked to investigate the "processes" by which the Rudd government made decisions about establishing the program, including how workplace health and safety and other risks were identified and managed.

More than 1 million homes were insulated under the Rudd government's scheme, which was also linked to the deaths of four men.

What will the royal commission involve?

The terms of reference are broad. Documents canvassed in the commission could include the unprecedented release of cabinet papers covering the Rudd ministry's discussions about the home insulation program, which under confidentiality rules would be kept private for 30 years. The commission could call for testimonies from former prime ministers Kevin Rudd and Julia Gillard, and former cabinet ministers, Peter Garrett, Lindsay Tanner and Greg Combet.